Yuzhou Group Holdings Company Limited reported a RMB 4.75 billion loss attributable to owners for the six months ended 30 June 2026, an improvement of 15.7% year-on-year. Revenue increased 10.8% to RMB 2.66 billion, driven by a higher average selling price on delivered units.

Gross profit edged up to RMB 26.25 million, yielding a slim gross margin of 1.0%. A RMB 995.97 million fair-value loss on investment properties and RMB 1.86 billion of write-downs on inventories remained key drag factors, though both were lower than the prior-period levels.

Contracted sales fell 23.7% to RMB 2.85 billion, with contracted GFA down to 215,944 sq m and an average selling price of RMB 13,177 per sq m. The Yangtze River Delta and Greater Bay Area together contributed just under 80% of total contracted value.

Liquidity conditions tightened further. Cash and bank balances (including restricted cash) declined 24.6% to RMB 1.85 billion, while current interest-bearing debt jumped 39.1% to RMB 4.25 billion. Net gearing stood at 833.2%. Net assets slid to RMB 3.57 billion from RMB 10.06 billion at end-2025.

Management disclosed “material uncertainty” over going-concern status, citing the mismatch between near-term maturities and available cash. Mitigation measures include accelerated inventory sell-through, asset disposals, debt-extension talks and strict cost controls.

As of 30 June 2026, total interest-bearing liabilities amounted to RMB 31.56 billion, of which 78.7% is denominated in US or Hong Kong dollars. The company is in discussions with offshore creditors on a holistic restructuring that may involve schemes of arrangement, debt-to-equity swaps and limited cash payouts.

No interim dividend was declared.

Looking ahead, the board expects China’s property market to remain in a prolonged adjustment phase and will prioritize sales conversion, asset monetization and balance-sheet repair in the second half.